Vehicle Financing Disclosure Requirements

When financing a vehicle through a dealership, the financial disclosure section on the purchase agreement must be completely filled out, or the entire contract of sale is null and void.

When a dealer sells a new or used vehicle he must disclose in writing how the vehicle is to be financed. All retail purchase agreements must have printed on the face of the original the language regarding financing included in the Finance Disclosure Agreement (§UCA 41-3-401). The dealer must complete and the customer must sign either section 1(a) or 1(b) of the agreement.

Questions and Answers

If I pay cash for a car, do I need to sign the financial disclosure?

Yes, you need to sign section "a" of the disclosure.

What happens if the financial disclosure section on the purchase agreement is not filled out?

The entire contract of sale is null and void.

If financing has been arranged by the dealer and the exact terms are known can the dealer complete part "b" of the financial disclosure by putting N/A in all of the terms part of the disclosure?

No, the exact terms must be entered in part "b" of the disclosure and both the customer and the dealer must sign the disclosure.

If a dealer completes section "b" but cannot get the vehicle financed because the bank charges more interest than agreed or the bank requires a co-signer, can the dealer require the customer to furnish a co-signor or pay the higher interest?

No, the dealer must arrange financing within the terms of the agreement. The contract will indicate all of the terms of the agreement.

When a dealer fills out the financial disclosure in section "b" and enters a low interest rate in the first portion of the interest disclosure but leaves the second portion blank can the dealer then force the customer to pay a higher interest rate?

No, the dealer is bound to obtain financing at the interest rate shown in the disclosure and cannot demand a higher rate. In addition the dealer runs the risk of having the entire contract declared null and void for failure to complete the disclosure.

If a dealer over-allows on the trade-in, wholesales the trade-in for actual cash value and then has to rescind the sale, can the dealer pay the customer what he actually got for the trade-in vehicle?